Friday, 24 May 2013

Energy bills ‘set to be dearer than mortgage’ http://www.energy-broker.co.uk/energy-bills-set-to-be-dearer-than-mortgage/

Ian McCaig, chief executive of supplier First Utility, said bills could overtake home repayments in some parts of Britain within five years. The firm’s research shows dual-fuel bills have risen by 8.5 per cent annually over the last five years, with an average household now forking out £1,420.

Mr McCaig said: “Given interest rates are low and look like staying that way, it could easily be that over the next five to 10 years we’ll see energy bills overtake mortgage costs for some consumers.”

The gloomy forecast came as it emerged British Gas made bumper profits thanks to one of the longest and coldest winters on record.

Demand for electricity and gas jumped 18 per cent during the freeze, yielding an extra £73.80 per customer.

According to rival First Utility’s analysis, average bills would reach £3,761 by 2025 if they continue to rise at their current rate – outstripping mortgage payments in areas including Stoke-on-Trent.

The Government predicts average bills will be just £76 higher by 2020, but the figures rely on assumptions of big rises in the take-up of energy-saving schemes.